Enabling investment and innovation
Network connections
Improving the efficiency of connecting to the distribution network and upgrading existing connections.
Overview
Distributors are facing more and increasingly complex requests to connect to their networks – particularly for large electricity users like public EV charging stations and data centres, and generators like solar and wind farms. Commercial and industrial consumers are also looking to switch from fossil fuels to electricity.
There is also strong competition between those seeking a connection (access seekers) over distributors’ resources for processing applications and connection capacity.
This project aims to address the barriers to efficient network connections. We want to make sure the Code supports fit-for-purpose application processes and standards, so networks operate efficiently, competitively and reliably. The Authority established a Network Connections Technical Group in February 2024 to help us with this.
Stage one of the project focuses on improving the application processes to connect large electricity users and distributed generation. We want these processes to be easier, faster, more equitable and more consistent across distribution networks. A consultation on proposed Code changes is expected to open in mid-October 2024.
Stage two of the project will consider a range of issues, such as application processes for residential solar and the fees that access seekers pay for distributors to process their applications.
Alongside this work, we’re addressing some barriers to efficient pricing for connecting to the distribution network. We will soon seek feedback on an initial set of proposals in our ‘Distribution connection pricing’ consultation. This will run at the same time as the ‘Network connection project’ stage one consultation, so stakeholders can consider the complementary sets of proposals.
Together, these proposals aim to support more efficient investment in infrastructure, which lowers overall costs to consumers and supports a growing, thriving and electrified New Zealand.
Timeline
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Mid-October
Consultation —Stage One consultation to open
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1 October 2024
News — -
30 August 2024
Presentation —Introduction to network connections project
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16 October 2023
Work programme —Distribution sector reform indicative work programme published
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3 August 2023
Update —Publication of submissions and a summary of submissions
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20 December 2022 - 28 February 2023
Consultation — -
27 July - 28 September 2021
Consultation —
Project background
This project is part of the Authority’s Updating regulatory settings for distribution programme which encompasses projects that aim to improve regulatory settings so they better support New Zealand’s transition to a low-emissions economy.
This project was established in response to issues raised during consultations in 2021 and 2022 and ongoing conversations with the sector about the processes and standards to connect to distribution networks and operate efficiently. These processes and standards are regulated under Part 6 of the Code.
The last substantive review of Part 6 was completed in 2015. Since then, the number, size and complexity of connection applications for distributed generation have changed substantially, and a comprehensive review is required.
Given the breadth of the Part 6 regulations, we have divided the project into two stages. This allows the Authority to prioritise its focus and move more quickly on issues stakeholders have told us are most important.
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